ETF Climbs on Recovery as Solars Advance: China Overnight

By Ye Xie -
Feb 15, 2013

The biggest Chinese exchange-traded
fund in the U.S. is poised for its second weekly advance in
February amid signs the recovery in the world’s two largest
economies is gaining traction. Solar stocks rallied in New York
on the outlook for global alternative energy demand.

The iShares FTSE China 25 Index Fund was little changed at
$40.20 by 12:10 p.m. in New York, set to gain 0.9 percent this
week. The Bloomberg China-US Equity Index of the most-traded
Chinese equities in the U.S. was also steady at 96.46, with
mainland markets in China closed this week for the New Year
holiday. LDK Solar Co. surged 23 percent this week as
polysilicon producer Wacker Chemie AG said that it’s boosting
output as orders from solar companies exceed production.

Consumer confidence in the U.S., measured by the Thomson
Reuters/University of Michigan preliminary index, rose in
February to a three-month high, and a measure of manufacturing
in the New York region unexpectedly expanded, data yesterday
showed. In China, government reports this year have shown trade
grew more than estimated in January and that the economy emerged
from a seven-quarter slowdown at the end of 2012.

“Along with Chinese data, the U.S. is making some notable
structural adjustments and the economies are more or less doing
OK,” Erik Lam, director of Asian equity sales at Auerbach
Grayson & Co. in New York, said by phone. “Things are going to
do nicely this year.”

Tal Education Group, a Beijing-based company that runs
tutoring services, posted the best performance on the China-US
gauge yesterday, rising 4.5 percent to $9.67 and set for the
highest close since Dec. 21. Ambow Education Holding Ltd., the
education provider that sank to a record-low last week, rallied
for a fifth day, gaining 2.8 percent to $1.64, an almost two-
week high.

Hang Seng

Youku Tudou Inc., owner of China’s most-used video
websites, slid the most since Feb. 4, declining 3.1 percent to
$21.83 in New York.